Question: How much of Dubai’s property market is driven by perception? Many buyers appear to be investing as much in the city’s lifestyle, safety and ease of living as the property itself. If that perception takes even a slight hit, does it begin to affect demand or prices in a meaningful way? AR, Kuala Lumpur
Answer: I would have to say that it can become a very real problem, because the image of Dubai is not superficial. People don't just buy square metres here. They buy the story and lifestyle around it. They buy into the ease of doing business, the access, safety, sunshine, stability, travel links, brands, convenience – the list goes on.
However, when that story is interrupted, even temporarily, it does affect the appetite. Recent reports have suggested that Dubai's carefully built image of glamour and stability had been affected by the Iran conflict. You can see it in places beyond property. Media reports have suggested that the number of visitors to Dubai Mall was down about 50 per cent in March, and that luxury retail in the UAE was under serious pressure.
Tourism has also taken a hit, and even the Burj Al Arab and other well known hotel brands are closing for refurbishment. I do want to stress, however, that none of this means Dubai is finished. It means the image machine has taken a knock, and that matters, because perception influences spending, travel and investment decisions.
The good news for Dubai is that its image can recover if the underlying city still works – and it does; we are all getting on with our lives. The real risk is not that one bad period destroys the brand forever, but that if disruption becomes normal, people will start adjusting their habits and their assumptions.
Q: Given the situation today, should one buy a ready property rather than off-plan? Surely, the Middle East feels too uncertain to be buying at the moment. What do you think? JF, Sydney
A: In this kind of environment, I understand why more people are leaning towards ready property. When the off-plan market is unsettled, there is comfort in something you can see, inspect, rent out or move into immediately. You remove one layer of uncertainty. You are also not waiting for construction, handover or the future mood of the market at completion.
That said, I would not dismiss off-plan completely. There are still strong developers, well-placed projects and sensible long-term opportunities. In fact, now may be a great time to take a look, at the very least. A lot of developers have changed their payment plans, making them much easier to pay back, and are also offering benefits such as DLD waivers, guaranteed ROI and post-handover plans.
The problem is that uncertainty makes people less forgiving. A delay that might have felt manageable in a booming market feels much more worrying in a tense one. Buyers are less willing to pay for optimism now. They want evidence, delivery history and prices that make sense. So yes, on balance, I think ready property has become easier to justify right now, especially for cautious buyers and overseas investors who want clarity. But the real point is that, in uncertain times, the burden of proof rises.
A property must make sense without relying on a perfect future. This applies to ready property as well as off-plan, but it is especially important with off-plan, because you are always buying part-reality and part-faith. So I would say, ensure due diligence is applied in any case.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@evadxb.com
